Personal Income Tax Organizer, an Outsourced Recordkeeping Solution by Plumb Family CFO

In this client case study, Plumb Family CFO gives an overview of the recordkeeping and accounting services that go into putting together a personal income tax organizer that streamlines year-end tracking and creates financial organization in order to file tax returns.

Client: High-net-worth real estate investor with multiple properties, S Corp, and brokerage accounts.

Net Worth: $35MM

Background:  This real estate investor has a large portfolio of multi-family rental and mixed-use properties, along with an S Corp, and complex personal accounting needs. With limited time and resources to organize his financial records and supporting tax documents, he turned to Plumb Family CFO as an outsourced accounting solution.

The Solution:  Plumb Family CFO collects, tracks and organizes the client’s financial data to create a comprehensive and audit-proof financial package for year-end.  This allows for the client’s CPA firm to be more cost-effective with their time and helps to maximize standard deductions. Plumb also supplies the CPA with quarterly financial reports to properly adjust estimated tax payments as needed to avoid any penalties and interest chargers with the IRS or Franchise Tax Board.

By having accurate recordkeeping throughout the year, with up-to-date reconciliations and properly tracked income and expenses, the client experienced tax season with the peace of mind knowing that he had the highest quality of data and financial reporting to file tax returns. With a clear financial picture, he was able to make informed decisions with his wealth and property portfolio.

View: Additional Family CFO Case Studies

“Plumb Family CFO tracks and organizes my client’s financials and paperwork throughout the year and I never have to worry about any last-minute fire drills or missing information during tax deadlines”.  – Client’s CPA

Download: Sample copy of Annual Tax Organizer / Personal Income Tax Organizer

Personal Income Tax Organizer: “Pulling it all Together”

In order for Plumb Family CFO to organize and compile all the data for the client’s CPA to file tax returns, we follow an accounting preparation guideline, including:

• Step 1: Fully reconcile and close out year-end financials
• Step 2: Print a P&L statement for each entity to use as reference tool
• Step 3: Work with the client’s CPA to use their standard personal income tax organizer or create document using Plumb Family CFO template
• Step 4: Outline and track any major purchases made throughout the year that may have a tax impact – for example, purchase/sale of real estate, purchase of electric vehicle or IRA contributions

Financial Recordkeeping & Supporting Tax Documents

Here is a sample list of the supporting tax documents that Plumb Family CFO will collect throughout the year for the personal income tax organizer package.

• Wages/Salary – W2
• Interest/Dividend Income:
• 1099s from bank and brokerage firms
• General Ledger for private loan/note interest received
• Capital Gains/Losses
• 1099 from brokerage firms
• K1 Schedules
• Private Equity
• Hedge Funds
• Privately Held Companies
• Property Income/Expenses
• Include P&L by investment property to be included on Schedule E of the tax return
• Standard Deductions
• Include GL detail for each category
• General Expense Categories
• Medical and Health Insurance
• Legal – Estate Planning
• Interest Expense – either 1098 form for mortgage or investment interest
• Property Taxes for Residence(s)
• Donations – include donation receipt for amounts over $250 per annum
• Tax Payments (IRS and State)

Ready to start your new year with organized financials in preparation for tax season? Plumb Family CFO works in partnership with your CPA and personal financial team.  Fill out the form below to learn more.

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• Why Use a Personal Bill Pay Service Firm 
• Family Bill Pay Services: Organize your Financial Life
• Five Signs that you Need a Back-Office Family CFO 

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